Despite a huge increase in popularity of lightweight European sport or road racing bicycles in the United States, adhered to its existing strategy in the lightweight adult road bike market. Though weighing slightly less, the mid-priced Schwinn Superior or Sports Tourer was almost indistinguishable from Schwinn’s other heavy, mass-produced models, such as the Varsity and Continental. While competitive in the 1960s, by 1972 these bicycles were much heavier and less responsive in comparison to the new sport and racing bicycles arriving from England, France, Italy, and increasingly, Japan.
When they failed to find what they wanted at Schwinn, they went elsewhere. While the Paramount still sold in limited numbers to this market, the model’s customer base began to age, changing from primarily bike racers to older, wealthier riders looking for the ultimate bicycle. Schwinn sold an impressive 1.5 million bicycles in 1974, but would pay the price for failing to keep up with new developments in bicycle technology and buying trends. At the time, most bicycle manufacturers in the United States sold in bulk to department stores, which in turn sold them as store brand models. F. Goodrich bicycles, sold in tire stores, Schwinn eliminated the practice of producing private label bicycles in 1950, insisting that the Schwinn brand and guarantee appear on all products. In exchange for ensuring the presence of the Schwinn name, distributors retained the right to distribute Schwinn bikes to any hardware store, toy store, or bicycle shop that ordered them.
The Paramount operations were moved to Waterford, Wisconsin, where the Paramount was reborn with a modern factory and workforce. Schwinn then partnered with 7-Eleven, establishing a team including Eric Heiden. When 7-Eleven decided to hit the big time in racing, Schwinn went its own way due to a lack of funding.
The company also focused on leveraging advertising by including well-known stars in advertisements and famously marketing to children on Captain Kangaroo. While innovative, these business dealings brought about lawsuits that would plague the company for decades. schwinn bicycles never played it conservative with their ad budget, but their best sales agents were always their customers. Popular mid-century models like the Streamline Aerocycle, the AutoCycle, the Continental, Panther, Jaguar, Hornet, Black Phantom, and Sting-Ray all generated word-of-mouth buzz at bike shops, playgrounds, offices, etc. The Chicago factory was basically producing the bicycle equivalent of the Mustangs and T-Birds coming out of Detroit, and the biggest challenge was just keeping up with demand.
Although the company’s 125th anniversary plans were rescheduled, Schwinn has been using social media to welcome consumers who’ve come back to cycling during the crisis. Well before the pandemic upended its original plans, Schwinn was facing a steep climb in regaining the brand’s popularity, which peaked during the mid-20th century, and competing in the current fragmented marketplace. “We’re looking at what we can do to use our tremendous heritage in cycling,” Zucchi said when CNBC first spoke with him in mid-February, pre-coronavirus. The Schwinn Signature line, a collection of classically styled and new urban-focused bikes, will be available in independent bicycle retailers across the US and perhaps even rekindle the joys of bicycling in early Schwinn owners.
Mr. Schwinn is well known in the trade, having been a manufacturer of bicycles, marketed largely through the jobbing trade, for some twenty years, and has built up the business, calling for an output of 100,000 wheels a year. He worked for a short time for the firm of Hill & Moffat, makers of the Fowler bicycle, and later designed the bicycles and planned and installed the bicycle factory of the International Manufacturing Company. Take a friend with you and cruise in style on Schwinn’s aluminum Tango Tandem.
The company offers just as many lessons in the benefits of persistence and innovation as it does in the consequences of tunnel vision and stubbornness. Whole books have been published on huffy mountain bike bikes, written by proper bicycle people. Bicycle manufacturing in America has declined significantly in the past several decades.